*Please make sure you understand how to use the table above. The main purpose of this report is to provide information so contradictory signals are always presented. *DTFMS = Dual Time Frame Momentum Strategy. The signal is given when both weekly and daily STO have the same buy/sell signals. Use it as a filter, don’t trade directly.

The chart below shows the seasonality around the Independence Day. Just want to remind you: the market closed on 07/05.

So to summarize above, looks to me the Thursday and Friday next week are bullish.

INTERMEDIATE-TERM: NEXT WEEK NEUTRUAL, NEXT NEXT AND NEXT NEXT NEXT WEEK ARE BEARISH

As mentioned in 06/24 Market Recap, officially the intermediate-term trend is up because I don’t argue with my SPY ST Model which now is still in BUY mode. But as explained in the 06/21 Market Recap, lacking of secondary buy signals should keep you from on the long side, therefore till now, even I kept saying that officially the trend is up while the market kept dropping everyday, you should lose no intermediate-term positions.

By the way, I simply provide info in my daily After Bell Quick Summary, those tricks don’t represent my view of the market. For example, this week, the tricks were apparently bullish biased, but no matter what I think, I have to tell you whatever I see. In no circumstance, should I tell you, this time may be different. It’s up to you to decide. I’m a believer of there’s no 100% correct Holly Grail in the trading world. In order to win in the long run, I must always bet on the side that proves to have higher odds RELIGIOUSLY. If every time I see something, I always say maybe this time is different, then virtually no indicators, no statistics are needed, to trade, the only thing matters is what I FEEL. Well, I don’t believe this is how I should trade. Anyway, even tricks didn’t work good this week, but don’t forget in 06/18 Market Recap, I said clearly, this week would very likely be a red week. And for the next day’s speculation in everyday’s After Bell Quick Summary, I was still right on Monday and Friday. So again it’s not that bad as it feels, statistics still matters.

Well, back to where we are, officially the intermediate-term trend is up, but in 06/24 Market Recap, I mentioned 3 potential top signs:

The chart below is a simple back test about a weekly bearish engulfing since 1988. Sell short at the Friday’s close, cover at close 1 week, 2 week, 3 week, 4 week, 5 week and 6 week later at close since 1988. Looks to me the next week is neutral, but week 2, 3 and 4 are not so bull friendly.

So to summarize above, all I can say are, intermediate-term doesn’t look bright, but officially it’s not a confirmed down yet. When to confirm? I’ve discussed this in the 06/22 After Bell Quick Summary. Yes, when the trend is finally confirmed down, it’d be too late but it’s a sad reality. For right now, bulls still have a little hope:

Emerging markets, European markets, Euro, Australian Dollar and oil all held well. Those guys usually lead the US market.

4.0.5 The World Market, this chart should clearly show why I said that EEM leads the market. Believe or not, EEM is an very important leading indicator. See HERE for reasoning behind it if interested.

So, although at the current stage, the intermediate-term doesn’t look bright, but still bulls are not dead yet. A Spinning Top formed on SPY daily chart this Friday could be a potential reversal bar (50% chances). A green Monday would trigger the SPY ST Model and Reversal Bar Model buy setup which I’ve discussed in the 06/23 Market Recap, if indeed they’re confirmed, bulls will have 67% chances.

SHORT-TERM: COULD SEE GREEN MONDAY BUT BE CAREFUL OF NASDAQ INTRADY CUMULATIVE TICK

I’ve mentioned 2 reasons in the Friday’s After Bell Quick Summary for a green Monday. I know they’re not convincing at all but here I finally managed to find the 3rd “EXCUSE”: QQQQ down 5 days in a row, buy at close, sell at the next day close since 2002, looks like not bad for bulls the next Monday.

So to summarize above, very short-term, bulls have hopes, but in the Friday’s After Bell Quick Summary, I said I’m going to WOW here. The previous 8 WOWs were in 06/02 Market Recap, 05/26 Market Recap, 05/18 Market Recap, 05/12 Market Recap, 05/03 Market Recap, 04/29 Market Recap, 04/20 Market Recap and 04/14 Market Recap, the market all had a bigger pullback no later than the next Tuesday, so be careful. Personally, I still think the extremely high readings in the sentimentrader’s Nasdaq Intraday Cumulative TICK chart simply means a change in trading characters, not because people are too much in love with Nasdaq stocks. I think you can clearly see this in the chart below, the Friday’s WOW now is within a recent NORMAL range even shouldn’t be counted as a WOW now because it’s still not higher than the solid red line above. Well, of course, I don’t mean to ignore this chart, I simply want to say that don’t treat WOW as bear’s Holly Grail like people in my forum do.

*Please make sure you understand how to use the table above. The main purpose of this report is to provide information so contradictory signals are always presented. *DTFMS = Dual Time Frame Momentum Strategy. The signal is given when both weekly and daily STO have the same buy/sell signals. Use it as a filter, don’t trade directly.

The chart below shows the seasonality around the Independence Day. Just want to remind you: the market closed on 07/05.

So to summarize above, looks to me the Thursday and Friday next week are bullish.

INTERMEDIATE-TERM: NEXT WEEK NEUTRUAL, NEXT NEXT AND NEXT NEXT NEXT WEEK ARE BEARISH

As mentioned in 06/24 Market Recap, officially the intermediate-term trend is up because I don’t argue with my SPY ST Model which now is still in BUY mode. But as explained in the 06/21 Market Recap, lacking of secondary buy signals should keep you from on the long side, therefore till now, even I kept saying that officially the trend is up while the market kept dropping everyday, you should lose no intermediate-term positions.

By the way, I simply provide info in my daily After Bell Quick Summary, those tricks don’t represent my view of the market. For example, this week, the tricks were apparently bullish biased, but no matter what I think, I have to tell you whatever I see. In no circumstance, should I tell you, this time may be different. It’s up to you to decide. I’m a believer of there’s no 100% correct Holly Grail in the trading world. In order to win in the long run, I must always bet on the side that proves to have higher odds RELIGIOUSLY. If every time I see something, I always say maybe this time is different, then virtually no indicators, no statistics are needed, to trade, the only thing matters is what I FEEL. Well, I don’t believe this is how I should trade. Anyway, even tricks didn’t work good this week, but don’t forget in 06/18 Market Recap, I said clearly, this week would very likely be a red week. And for the next day’s speculation in everyday’s After Bell Quick Summary, I was still right on Monday and Friday. So again it’s not that bad as it feels, statistics still matters.

Well, back to where we are, officially the intermediate-term trend is up, but in 06/24 Market Recap, I mentioned 3 potential top signs:

The chart below is a simple back test about a weekly bearish engulfing since 1988. Sell short at the Friday’s close, cover at close 1 week, 2 week, 3 week, 4 week, 5 week and 6 week later at close since 1988. Looks to me the next week is neutral, but week 2, 3 and 4 are not so bull friendly.

So to summarize above, all I can say are, intermediate-term doesn’t look bright, but officially it’s not a confirmed down yet. When to confirm? I’ve discussed this in the 06/22 After Bell Quick Summary. Yes, when the trend is finally confirmed down, it’d be too late but it’s a sad reality. For right now, bulls still have a little hope:

Emerging markets, European markets, Euro, Australian Dollar and oil all held well. Those guys usually lead the US market.

4.0.5 The World Market, this chart should clearly show why I said that EEM leads the market. Believe or not, EEM is an very important leading indicator. See HERE for reasoning behind it if interested.

So, although at the current stage, the intermediate-term doesn’t look bright, but still bulls are not dead yet. A Spinning Top formed on SPY daily chart this Friday could be a potential reversal bar (50% chances). A green Monday would trigger the SPY ST Model and Reversal Bar Model buy setup which I’ve discussed in the 06/23 Market Recap, if indeed they’re confirmed, bulls will have 67% chances.

SHORT-TERM: COULD SEE GREEN MONDAY BUT BE CAREFUL OF NASDAQ INTRADY CUMULATIVE TICK

I’ve mentioned 2 reasons in the Friday’s After Bell Quick Summary for a green Monday. I know they’re not convincing at all but here I finally managed to find the 3rd “EXCUSE”: QQQQ down 5 days in a row, buy at close, sell at the next day close since 2002, looks like not bad for bulls the next Monday.

So to summarize above, very short-term, bulls have hopes, but in the Friday’s After Bell Quick Summary, I said I’m going to WOW here. The previous 8 WOWs were in 06/02 Market Recap, 05/26 Market Recap, 05/18 Market Recap, 05/12 Market Recap, 05/03 Market Recap, 04/29 Market Recap, 04/20 Market Recap and 04/14 Market Recap, the market all had a bigger pullback no later than the next Tuesday, so be careful. Personally, I still think the extremely high readings in the sentimentrader’s Nasdaq Intraday Cumulative TICK chart simply means a change in trading characters, not because people are too much in love with Nasdaq stocks. I think you can clearly see this in the chart below, the Friday’s WOW now is within a recent NORMAL range even shouldn’t be counted as a WOW now because it’s still not higher than the solid red line above. Well, of course, I don’t mean to ignore this chart, I simply want to say that don’t treat WOW as bear’s Holly Grail like people in my forum do.

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About This Blog

This blog contains the daily market summary based on my chart book on StockCharts.